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PricingService areasAll services →Accounting and Tax for Ontario Daycares and Childcare Centres
CWELCC funding, cost-based reporting, ECE payroll and HST-exempt fees handled by a CPA-led accounting firm that understands how licensed child care is funded.
24/7 receptionist, a real person answers.
- Every return is reviewed by a CPA
- No surprise bills
- Reply within one business day
- 24/7 receptionist: a real person answers
- QuickBooks Online, Xero and Dext
- Rated 5.0 stars from 31 Google reviews (read our reviews)
T-Ledgers is a CPA-led accounting firm working with Ontario child care operators, from licensed home child care providers to for-profit and non-profit centres enrolled in the Canada-Wide Early Learning and Child Care (CWELCC) system. Wajahat Ajmal, CPA, FCCA, has been practising since 2020. We handle bookkeeping, payroll, funding records and corporate and personal tax, and every return is reviewed by a CPA.
Child care runs on two income streams at once: reduced parent fees and government funding paid through your municipal service manager. Each has its own rules, reporting and timing, and both feed into your tax return and your year-end funding reconciliation.
Daycare and childcare tax and bookkeeping issues we handle
CWELCC funding and cost-based reporting
Ontario licensees enrolled in CWELCC receive funding through their Consolidated Municipal Service Manager (CMSM) or District Social Services Administration Board (DSSAB). Under the cost-based approach, funding is built from eligible costs, plus an amount in lieu of profit or surplus, less the base fees you expect from parents. We set up your chart of accounts so eligible and ineligible costs are separate from day one, which makes the funding reconciliation and any cost review much easier.
Law and source: Ontario, CWELCC Cost-Based Funding Guideline (Chapter 2, Division 2, July 2026); Ontario, 2026 CWELCC cost-based funding estimator; Child Care and Early Years Act, 2014 (Ontario) (licensing).
Parent fees under CWELCC
Parent fees for eligible children are set under Ontario’s CWELCC rules, and the province announces any change to fee levels. We track fee revenue by child and age group so it matches what you report to your service manager.
Law and source: O. Reg. 137/15 under the CCEYA (CWELCC base fees and general rules); Ontario, CWELCC Cost-Based Funding Guideline (Chapter 2, Division 2, July 2026).
Funding is taxable income for for-profit operators
For a for-profit centre or home child care business, CWELCC funding is generally taxable business income, whether it replaces parent fees or helps cover your operating costs. Funding tied to buying a specific asset can instead reduce that asset’s cost for tax purposes. We record it so your T2 or T2125 lines up with your funding statements.
Child care fees are exempt from HST
Child care services whose main purpose is the care and supervision of children 14 and under, for periods normally less than 24 hours a day, are generally exempt from GST/HST. That means you don’t charge HST on fees, but you also generally can’t claim input tax credits on the HST you pay for supplies and rent. We make sure your books treat HST as a cost, not a recoverable amount.
Law: Excise Tax Act Schedule V, Part IV s.1 (exempt child care services); Excise Tax Act s.169(1) (input tax credits).
Receipts for parents
Parents can generally deduct child care expenses on their own returns, and they need proper receipts from you. Individual providers must show their social insurance number on the receipt. We help you issue year-end receipts that match what parents actually paid after CWELCC reductions.
ECE payroll, wage enhancement and EHT
Child care is a payroll-heavy business. We run payroll for registered early childhood educators and assistants with the right source deductions, record any provincial wage enhancement funding separately, and track your Employer Health Tax position as payroll grows.
Law and source: Income Tax Act s.153(1) (source deductions); Employer Health Tax Act (Ontario) s.2.1 (annual exemption for eligible employers); Ontario, EHT tax exemption.
Home child care and non-profit centres
Licensed home child care providers who are self-employed report on a T2125 and may be able to claim part of their home costs for the space used for the business. Many centres are non-profit organizations or charities, which file different returns. We set up the right filings for your structure.
Law: Income Tax Act s.18(12) (work space in home); Income Tax Act s.149(1)(l) (non-profit organizations).
Key rules at a glance
← Swipe to compare →
| Rule | What it means for you | Law and source |
|---|---|---|
| CWELCC cost-based funding | Funding is based on eligible costs, plus an amount in lieu of profit or surplus, less expected parent fees | Ontario, CWELCC Cost-Based Funding Guideline (Chapter 2, Division 2, July 2026) |
| Parent fees | CWELCC base fees for eligible children are set by Ontario regulation | O. Reg. 137/15 under the CCEYA (CWELCC base fees and general rules) |
| Funding is income | CWELCC funding is generally taxable business income for for-profit operators | Income Tax Act s.9(1) (business income); Income Tax Act s.12(1)(x) (government assistance) |
| Child care is HST-exempt | No HST on fees, but generally no input tax credits either | Excise Tax Act Schedule V, Part IV s.1 (exempt child care services) |
| Parent receipts | Parents need receipts to claim child care expenses | Income Tax Act s.63 (child care expenses) |
| Employer Health Tax | EHT on Ontario payroll above the exemption | Employer Health Tax Act (Ontario) s.2.1 (annual exemption for eligible employers); Ontario, EHT tax exemption |
Who we work with
- Licensed child care centres enrolled in CWELCC
- Licensed home child care providers and agencies
- Non-profit and charitable child care centres
- Before- and after-school programs
- Montessori and private preschools
- New operators opening their first centre
T-Ledgers services for daycares and childcare centres
- CWELCC funding records. Eligible-cost tracking, funding reconciliations and support for your service manager's financial reporting, quoted after a free call (see bookkeeping).
- Monthly bookkeeping. From $500/month (Scale), with books closed by the 10th; quarterly bookkeeping from $350/month (Growth). Your fixed fee is confirmed after a free call. On monthly plans your books are done by the 10th, and if we're late on our side, that month's fee is waived (see bookkeeping).
- Catch-up bookkeeping, from $1,800 per year. We rebuild past years and file what's overdue (see catch-up bookkeeping).
- Bookkeeping Review, $195/month or $295/quarter. For owners who keep their own books (see bookkeeping).
- GST/HST returns, $150 per return. Filed on your CRA schedule (see GST/HST services).
- Payroll. Quoted after a free call (see payroll services).
- Corporate (T2) and personal (T1) tax. Personal tax returns from $110 + HST/GST, with your final price confirmed after a free call. Corporate (T2) returns are quoted after a free call (see corporate tax and personal tax).
- Virtual CFO, from $2,500/month. Cash flow, margins and growth decisions (see Virtual CFO).
Prices are + HST/GST. Anything without a listed price is quoted after a free call, and you get the price in writing before any work starts.
How we work with daycares and childcare centres
- Free call. We ask about your licence, CWELCC enrolment, enrolment numbers, staff and how your records are kept.
- Written price. Scope and price in writing before any work starts.
- Setup. Chart of accounts split into eligible and ineligible costs, fee tracking by age group, payroll and receipt templates.
- Monthly rhythm. Books done by the 10th on monthly plans, payroll on schedule, funding and fee revenue reconciled.
- Year-end. Funding reconciliation support, parent receipts, T4s, and the T2, T2125 or non-profit return, all reviewed by a CPA.
Why daycares and childcare centres choose T-Ledgers
- We understand child care funding. CWELCC eligible costs, parent fee caps, ECE payroll and exempt HST are part of our normal conversation.
- CPA-led, start to finish. T-Ledgers was founded by Wajahat Ajmal, CPA, FCCA, practising since 2020. Every return is reviewed by a CPA before it's filed.
- Proven track record. 202 clients served and $60 million in client revenue managed.
- No surprise bills. You get the scope and the price in writing before we start. If the work changes, we agree the new price with you first.
- Price matching, agreed up front. Have a comparable written quote? Bring it to us before you sign your proposal. We can only match a price when it's agreed before the proposal is signed.
- Fast, human answers. We reply within one business day, and our 24/7 receptionist means a real person answers when you call 866-254-5368.
- In person or online. Meet us in person, by appointment only, at our Etobicoke office (102-89 Skyway Ave, Etobicoke, ON M9W 6R4) or our Mississauga office (100 Matheson Blvd E #204, Mississauga, ON L4Z 3P8), or work with us entirely online.
- Your software, set up properly. We work in QuickBooks Online and Xero, and use Dext so receipts go in with a photo.
Meet your CPA
Wajahat Ajmal, CPA, FCCA, Founder, T-Ledgers Accounting. Verify my CPA Ontario membership.
I started my career as an audit associate at KPMG. Since then I’ve worked as an independent contractor for a tax filing company, preparing returns and handling client questions. I hold a BSc in Applied Accounting from Oxford Brookes University and an MSc in Professional Accountancy from University College London. I’m a Chartered Professional Accountant in Ontario and a Fellow of the ACCA. I started taking on my own clients in 2020 and founded T-Ledgers in 2023.
Every return the firm files is reviewed by a CPA. You can read more about the firm on our About page.
What our clients say
Read more on our client reviews page.
DIY vs a generalist firm vs T-Ledgers
← Swipe to compare →
| DIY | Generalist firm | T-Ledgers BEST VALUE | |
|---|---|---|---|
| CWELCC eligible costs | Mixed in with everything else | Sorted at year-end | ✓Split from day one, ready for reconciliation |
| HST on supplies | Claimed by mistake as credits | Often fixed after the fact | ✓Treated as a cost because fees are exempt |
| Parent receipts | Built by hand in a spreadsheet | Year-end only | ✓Issued from fee records that match funding reports |
| Who checks the return before it's filed | You do | Depends on the firm and who's assigned | ✓Every return is reviewed by a CPA |
| How you're billed | Software fees plus your own time | Often hourly; the final bill can vary | ✓Scope and price in writing up front. No surprise bills |
| Getting an answer | Search online or wait on CRA phone lines | Varies by firm | ✓Reply within one business day; 24/7 receptionist, a real person answers |
| Software | Whatever you set up yourself | May ask you to switch to their system | ✓QuickBooks Online, Xero and Dext |
| Meeting face to face | Not applicable | Varies | ✓In person by appointment in Etobicoke or Mississauga, or fully online |
| Price matching | Not applicable | Rare | ✓Available if agreed before you sign your proposal |
Frequently asked questions: Daycare and childcare
For a for-profit centre or home child care business, government funding is generally included in income. We record it so your tax return matches your funding statements.
Yes. We keep eligible and ineligible costs separate through the year so your reconciliation and any cost review are easier.
Fee levels and funding are set by Ontario under its agreement with the federal government, and they can change when that agreement is extended or renewed. We follow each announcement and update your budget and fee revenue when the rules change.
Generally no. Child care for children 14 and under, for periods normally less than 24 hours a day, is exempt. That also means you generally can’t claim input tax credits.
A receipt showing what they paid. Individual providers must include their social insurance number.
Yes, with CPP, EI and income tax withheld, T4s issued and any wage enhancement funding recorded separately.
Self-employed home child care providers may be able to claim the business share of home costs. We work out the right percentage with you.
It depends on your goals and funding. We look at your numbers before recommending a structure.
GST/HST returns are $150 per return, catch-up bookkeeping starts from $1,800 per year, the Bookkeeping Review is $195/month or $295/quarter (from $450 per review for complex books). Monthly bookkeeping is from $500/month (Scale) and quarterly bookkeeping from $350/month (Growth). Personal tax returns from $110 + HST/GST, with your final price confirmed after a free call. Payroll and corporate tax returns are quoted after a free call. Prices are + HST/GST. You get the price in writing before any work starts.
Yes. If your funding agreement, licensing body, lender or board asks for reviewed or audited financial statements, we provide review and audit engagements through our partner firm. We keep your books ready for it, coordinate the engagement with you, and confirm the scope and fee after a free call.
On monthly plans your books are done by the 10th, and if we’re late on our side, that month’s fee is waived.
Yes, if you have a comparable written quote and bring it to us before you sign your proposal. We can only match a price when it’s agreed before the proposal is signed.
Yes. Snap receipts with Dext, share documents through our client portal and talk by phone or video. You can also meet us in Etobicoke or Mississauga by appointment.
Book a free call through our contact page or call 866-254-5368. We’ll ask a few questions about your business and send you a written price before any work starts.
Running a daycare or home child care business in Ontario?
Talk to a CPA who understands CWELCC funding and child care payroll. Book a free call. We reply within one business day, and a real person answers 24/7 at 866-254-5368.
Reviewed by Wajahat Ajmal, CPA, FCCA. Updated October 18, 2026.
Related services: Bookkeeping · Catch-up bookkeeping · Corporate taxes · Personal tax · Payroll · Virtual CFO · Contact us
Related industries: Accountant for non-profits · Self-employed · All industries